In collaboration with impact.com.
Over the past two years, the partnership economy has become the third fastest growing revenue channel for businesses, establishing itself as one of the most exciting, dynamic and rewarding areas of digital marketing. Influencer marketing has played a key role in this success and has recently become accustomed to producing consistently astonishing numbers: in 2017, the influencer market was worth $2bn (£1.4bn), but expected to reach US$15 billion (£11 billion) this year, and it has also been proven that it achieve 11 times the ROI of traditional marketing.
It’s clear that influencer marketing is resonating with SOM users in ways that many ad formats struggle to, meaning there’s never been a better time to consider diving into it. this successful marketing format or refine your influencer program if you already have one.
For the uninitiated, influencer marketing is simply the practice of a brand collaborating with an influencer to promote a good or service. Influencer marketing is fascinating because it offers businesses a unique set of benefits (which we’ll get to shortly). The industry is growing, maturing and consistently proving capable of offering one of the most customizable, intimate and trackable forms of marketing available, surpassing traditional performance marketing formats (such as targeted banner ads).
Back to basics
An influencer is someone who has a pre-engaged audience of a certain size (usually large – 10k+ followers – but not always) who maintains a relationship with their followers through specially created content posted on a social media platform. Influencers operate in almost every vertical imaginable, from fitness and health to gaming, beauty, business and travel (among many others), and work across all social media channels. Choosing the right influencer(s) for your program is key, and the platform they use can be a big factor in deciding who you choose to collaborate with.
For example, Instagram remains the undisputed king of influencer marketing at the time of writing, with 89% of businesses spending more of their influencer marketing budget on Instagram than on any other platform. But that doesn’t mean it’s necessarily the right solution for you, and TikTok or YouTube, for example, may suit your needs better if short or long videos (respectively) are a priority for you.
So what are the benefits of choosing influencer marketing over other formats? In an always-on world, influencers cut through the noise to deliver an authentic voice of integrity to their audience. They are trusted by their followers, who they generally enjoy interacting with, and they produce emotionally engaging content and messages directly to your target audience in a way that no other marketing sector can. Social commerce features are also becoming more prevalent on SOM platforms, with influencers proving essential to converting awareness into sales.
Show them the money
Where influencer marketing gets even more interesting is how you pay for your collaborations. Historically, a marketer could pay an influencer a one-time fee for a social media post, but over the past 15 years that has changed, and as we enter 2022, a hybrid compensation model in which a flat fee comes with a performance-related bonus based on campaign goals is becoming increasingly popular.
This encourages long-term collaboration and alignment with influencers who will be successful for your business. Longevity produces highly desirable results: mature advertising programs can generate 28% of a company’s total turnover compared to the 18% achieved by paid search, and also helps to promote the market share of the brand. Influencer marketing also offers the ability to pay for your collaborations through other flexible methods, including store credit, content license fees, and giveaways.
Influencer marketing ROI measurement is also growing rapidly. Although the number of “likes” and “comments” always contributes to the analysis of the success of campaigns, recent years have seen significant advances in technology and the subsequent advent of new measures that allow you to follow your campaigns at a granular level. These include both revenue and total conversions as well as brand awareness, allowing for in-depth analysis of your partnerships, making it easier to manage your influencer list.
The overwhelming evidence is that influencer marketing is an increasingly effective way to promote a good or service, and at impact.com we see companies reaping the rewards. Recently, gaming hardware maker Razer used our fully automated influencer partner program tools to streamline and scale their campaigns, and achieved a 33% increase in effectiveness and 34% increase in revenue from one year to the next. LightInTheBox.com has also been very successful and, using impact.com products, achieved a 1000% increase in influencer posts and used influencer content to increase page conversions by 15%. e-commerce.
Get started with influencer marketing it couldn’t be easier, but there are a few things to keep in mind as you begin your journey. As we have already seen, investing for the long term pays dividends. As with any collaboration, your relationships with influencers will need communication and attention to produce the best results, but if you give them time to mature, you will see a significant improvement in scalability, quality, and consistency. effectiveness of your program. Diversifying your influencer base is also key, and using a variety of different influencers is a powerful way to expand your audience reach. Finally, be sure to only pay what you can measure and consider paying your influencers with a performance focus to maximize campaign effectiveness.